Corporate raiders may now style themselves as "shareholder activists" but firms are no less worried. .Mr Bilzerian describes American corporate management in the 1980s as "uniformly horrible.". Companies had no regard for their shareholders, he says: "In 1985, Mr Icahn took over Trans World Airline, the now defunct American airline. He loaded it with debt, sold its most valuable flight routes and ground the airline into bankruptcy. He acquired a reputation of a corporate raider. By undertaking a hostile takeover, he generated substantial returns on his investments. A few high-profile raiders became famous in the 1980s making big profits for themselves but causing unrest and unemployment. Based on the case let, explain the concept of corporate raider by explaining how they operate, underlining their motive. Are they a necessary evil?Explain
Corporate raiders may now style themselves as "shareholder activists" but firms are no less worried. .Mr Bilzerian describes American corporate management in the 1980s as "uniformly horrible.". Companies had no regard for their shareholders, he says: "In 1985, Mr Icahn took over Trans World Airline, the now defunct American airline. He loaded it with debt, sold its most valuable flight routes and ground the airline into bankruptcy. He acquired a reputation of a corporate raider. By undertaking a hostile takeover, he generated substantial
Based on the case let, explain the concept of corporate raider by explaining how they operate, underlining their motive. Are they a necessary evil?Explain
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